How to increase market-share and reduce cash expenses; Even in a slow economy.

Every business is presented with the same fundamental “problem”. There are a number of businesses and business models and each of them attempt to answer the problem in a unique manner.

 

The problem goes something like this:

 

Businesses need cash to operate

To operate a business requires cash. The expenses of a business can make a long list; start-up capital, business machines, marketing, payroll, rent, utilities, communications, and more. There are very few opportunities out there that give away cash for nothing, it’s hard to find large payoffs that require no investment, and money certainly does not grow on trees. (It does fall from the sky on certain bank commercials but they went out of business so that’s probably stopped now.)

 

A slow economy decreases cash flow to businesses

When the economy is slow or business is just slow cash coming into a business is significantly reduced. Customers or potential customers are hindered by their tightening budget. Other, un-reached customers or markets need to be tapped into. If the percentage of buyers in your market decreases new markets must be opened up to maintain sales.

 

Attracting new business costs cash

Well now we start seeing the dilemma here. If my cash flow is reduced because business is slow and I need to reach more customers, then how can I afford to broaden my reach if I don’t have the cash to pay for marketing?

 

Credit is expensive and requires cash flow to repay

You can finance business expenses like this however with finance charges this ends up costing more in the end. Also, you may already be extended with other expenses.

 

So what businesses need is a way to

 Increase Market Share while Reducing Cash expenses.

             Businesses need to reduce cash expenses while attracting new business

             Businesses need to avoid expensive credit while paying for goods and services

 

How can this be done?

Barter is the perfect solution.

When a business can purchase marketing or other needed business services with barter credits, then the business is reducing cash expenses. If the marketing is effective you have increased your market share while saving cash flow. Here is the best part there are no expensive financing charges to repay. In fact to pay for the credits that you spent business is sent to you! I’ve never heard of a credit card company doing that.